Easing New York’s Regulatory Burden
Promoting Business, Protecting the Public
February 2012
I. Introduction pg. 1II. The regulatory burden pg. 2
Figure 1: Top Ten State Agencies by Number of New Regulations Adopted 2009-2011 pg. 3Figure 2: Agencies that in 2009-2011 Adopted regulations with a Small Business Impact pg. 4Figure 3: Breakdown of Small Business Impact Level of New Regulations pg. 4Figure 4: Estimated Cost of Federal Regulations by Firm Size pg. 6Figure 5: Summary of Highlighted Regulations and their Impact pg. 14
III. Improvements to the Regulatory System pg. 15IV. New Proposals for Further Improvement pg. 16V. Conclusion pg. 21
1
I
.
Introdu
c
tion
Promulgating and enforcing necessary regulations is one of
our government’s most important
functions. From ensuring the safety of our drinking water, to protecting consumer rights, well-tailored regulations cannot only protect citizens, but can enhance private sector competition andlevel the playing field. However, hastily promulgated rules fail to accomplish either goal.As legislators, it is incumbent upon us to do two things: (1) identify why some regulations arehastily or improperly implemented, and (2) revise those regulations so that safety andcompetition are enhanced. In an increasingly reactionary policy making environment, it iscrucial that we undertake these tasks as soon as possible. New York State has accumulated many obsolete, redundant, or overly burdensome regulations.This situation has become counterproductive, increasing the cost of private enterprise while atthe same time failing to adequately protect the public from negative consequences. Various bodies have been formed in order to try to slow the accumulation of these rules and regulationsand to try to ensure that we maximize the benefits while limiting the costs as much as possible.The New York State Legislature responded by creating its own Administrative RegulationsReview Commission (ARRC).ARRC began as a joint Senate-Assembly committee, created in 1977 by concurrent resolution of the Legislature. The following year it became a permanent Commission, with the Legislaturestating that "Rulemaking power is delegated by the Legislature and the review of such power isan integral part of the legislative function
.”
Its delegated responsibilities are to (1) review the
rule’s compliance with the underlying statutory authority and
legislative intent, (2) assess thefiscal impact on state and local governments charged with enforcement, and (3) determine theeconomic impact on regulated parties. The ARRC works closely with state agencies in regard toissues and questions which arise with respect to agency rules. Often, the Commission acts as afacilitator to bring together agencies, regulated parties and concerned legislators to discuss particular rules and to develop responsible alternatives when conflicts arise. Chapter laws whichcontain rulemaking grants of authority are also monitored to insure the timely adoption of mandated rules. The drive to lower the burden that unnecessary or ineffective rules andregulations cast upon businesses continues today.In 2011, Sen. David Carlucci was named the Senate Co-Chair of ARRC. Under his leadership,ARRC has been reenergized in carrying out its mission. In the past year, ARRC has held publichearings and initiated vital new legislation intended to streamline
ARRC’s
reviewing andmonitoring process and to increase public participation in the rulemaking process. In addition,ARRC initiated a review of regulations dating back to the year 2000. Staff contacted varioussmall business, healthcare and agricultural organizations. The respondents included the NationalFederation of Independent Business, the Business Council of New York State, the HospitalAssociation of New York State, the Greater New York Hospital Association, the New York StateFarm Bureau and others. These organizations were asked questions concerning burdensomeregulations and the overall cost of New York State regulations to small businesses.
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